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Kallas pitches plan to raise €40 billion in military aid for Ukraine
The new initiative by Kaja Kallas is facing unresolved questions and political resistance that threaten to slow down its approval and roll-out.
High Representative Kaja Kallas has pitched an ambitious plan to mobilise up to €40 billion in fresh military support for Ukraine, which, if achieved, would represent a twofold increase from the defence assistance the European Union provided last year.
The plan, already nicknamed “the Kallas initiative” in Brussels, seeks to fulfill Ukraine’s priority needs to fight Russia’s war of aggression, with special emphasis on artillery ammunition, air defence systems, missiles, drones and fighter jets.
Non-lethal provisions, such as training and equipment for Ukrainian brigades, will also be taken into account to ensure the participation of neutral member states.
The donations can be made through direct deliveries of hardware or financial contributions, ideally designed to foster purchases from Ukraine’s defence industry, which has expanded at a rapid pace in the last three years.
Kallas says the initiative should be worth “at least €20 billion” and “potentially” reach €40 billion, according to the latest version of the document dated 13 March and seen by Euronews. A previous draft did not feature a clear-cut economic figure.
The wording of the plan is noteworthy.
It speaks of “participating” countries, which implies a shift towards a coalition of the willing that might – or might not – correspond with the 27 member states.
Hungary has become a vocal critic of military assistance for Ukraine, going as far as blocking the joint conclusions of a special summit last week. Prime Minister Viktor Orbán has described this assistance as a “pro-war” agenda that goes against Donald Trump’s goal to achieve a settlement between the warring parties. (Orbán has refused to say whether Vladimir Putin has a pro-war or a pro-peace agenda.)
For almost two years, Hungary has maintained a veto on €6.6 billion in funds under the European Peace Facility (EPF), which is meant to partially reimburse member states for the weapons and ammunition they send to Ukraine. Diplomats have tried several avenues to circumvent Budapest and release the EPF, but nothing has worked yet.
Kallas seems keen to avoid the same mistake and is framing her new initiative as a voluntary scheme that could evade Hungary’s negative vote. Slovakia, another staunch critic of military assistance for Kyiv, might also stand in the way.
The latest draft says “participating states are encouraged” to come up with fresh contributions, a language that falls short of mandatory. The pledges should be communicated to Brussels by 30 April.
Additionally, Kallas is opening the coalition to countries outside the bloc, such as the United Kingdom and Norway, who have become closely involved in the ongoing discussions around security guarantees for Ukraine. Earlier this month, Norway boosted its 2025 pledge to NOK 50 billion, equivalent to a whopping €8.19 billion.
“The Kallas initiative is open to third states,” a high-ranking EU official confirmed on Friday. “The more countries participate, the better it is to also fulfill Ukraine’s needs to be in a strong position in the trajectory ahead.”
Unresolved questions
The Kallas plan has been the subject of debate for several weeks in Brussels.
It is set to be re-discussed on Monday during a meeting of foreign affairs ministers and again on Thursday during a summit of EU leaders. The need to ramp up support for Ukraine has become pressing in response to the Trump administration’s pivot towards Moscow and increasingly critical rhetoric against European allies.
ADVERTISEMENTThe High Representative wants to receive the political go-ahead from member states before turning her three-page document into a more detailed project.
“First a political will, and then the rest will follow,” said the high-ranking official.
However, no agreement is expected to materalise in either of those two meetings due to a series of unresolved technical and political questions.
Kallas has proposed that a “portion” of the military contribution be done “in line” with each country’s “economic weight,” using gross national income (GNI) as the chief indicator to ensure the largest countries provide the largest donations.
ADVERTISEMENTFrance, for example, is believed to resist this formula because it would make the country commit to a hefty figure for the entire year, second only to Germany. According to the Kiel Institute for the World Economy, France ranks below Denmark, Sweden and the Netherlands, much smaller countries, when it comes to military support.
Paris is said to prefer basing its provisions on its financial cycles and Ukraine’s shifting needs on the ground. But for other governments, GNI is the most appropriate indicator as it would ensure a fair and proportionate distribution of the burden.
“We’re very much in favour of the plan, including GNI,” said a senior diplomat, speaking on the condition of anonymity. “Let’s see if it’s accepted by other member states.”
“The plan is trying to chart a new way forward, but a lot of discussion needs to take place” before a final deal, the diplomat added.
ADVERTISEMENTAnother issue that the capitals want to clarify is the accounting: how pledges made in recent months will be considered in the collective figure. (The latest draft speaks of support “provided in kind since 24 February 2025,” the war’s third anniversary.)
The accounting process might incorporate the value of security guarantees provided to Ukraine. This could benefit France as President Emmanuel Macron has said he would be willing to put boots on the ground to safeguard a potential deal with Russia.
Countries are also pushing for answers on how the Kallas initiative will integrate the €18 billion that the EU will supply Kyiv as part of an extraordinary loan backed by the windfall profits of Russia’s frozen assets. The European Commission, which designed the loan, has promised “maximum flexibility” to let Ukraine use the much-needed injection of liquidity to procure advanced weapons and ammunition.
There is an additional question on how effective the plan will be in practice if, from the beginning, it is built as a voluntary scheme without a strong legal foundation.
ADVERTISEMENT“It’s done on a voluntary basis to bypass Hungary,” said a senior diplomat from another country. “We do expect the rest to join forces and put our money where our mouth is.”
“It’s a politically binding agreement, so we expect everybody to fulfill that.”
Alice Tidey contributed reporting.
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Explainer by Jakub Janas: What’s the point of the G7 meeting?
Iran war update with Méabh Mc Mahon and Babak Kamiar.
Interview with Ghassan Salamé, Lebanese Culture Minister.
Interview with Valérie Hayer, Member of the European Parliament (Renew Europe, France).
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The official additionally stated that Iran has reviewed a US 15-point proposal for ending the ongoing war in the Middle East and deemed it “one-sided and unfair,” serving only US and Israeli interests, and lacking “the minimum requirements for success.”
“In brief, the proposal suggests that Iran would relinquish its ability to defend itself in exchange for a vague plan to lift sanctions,” he told Reuters.
No arrangement for negotiations has been established yet, the official continued, adding that Turkey and Pakistan are attempting to “establish common ground between Iran and the United States and reduce differences.”
The proposal, which was conveyed to Iran through Pakistan, “was reviewed in detail on Wednesday night by senior Iranian officials and the representative of Iran’s Supreme Leader,” the official said.
On Wednesday, Iranian regime-tied Press TV cited an Iranian official as stating that Tehran considered the conditions of the proposal excessive and would only agree to end the war at a time of its choosing if its conditions are met.
According to an N12 News report on Tuesday, citing three sources familiar with the details of the potential plan, the US was considering declaring a month-long ceasefire during which negotiations on the agreement would take place.
The 15-point plan reportedly contained terms including the dismantling of all existing Iranian nuclear capabilities, a commitment that Iran will discontinue efforts to obtain nuclear weapons, and a requirement that any already enriched uranium be moved out of Iran.
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U.S. security guarantees for Ukraine are being tied to Kyiv ceding the eastern Donbas region to Russia as part of a potential peace deal, Ukrainian President Volodymyr Zelenskyy told Reuters in an interview published Thursday.
“The Americans are prepared to finalize these guarantees at a high level once Ukraine is ready to withdraw from Donbas,” Zelenskyy said, describing a proposal he warned could undermine both Ukraine’s defenses and broader European security.
But a U.S. official, speaking on background, told Fox News Digital the claim is false.
Zelenskyy’s comments point to growing pressure from President Donald Trump to reach a swift end to the war, now in its fourth year following Russia’s 2022 invasion.
ZELENSKYY SAYS PEACE DEAL IS CLOSE AFTER TRUMP MEETING BUT TERRITORY REMAINS STICKING POINT
Zelenskyy suggested the administration’s approach is influenced in part by competing global crises, including the ongoing conflict involving Iran.
U.S. security guarantees for Ukraine are being tied to Kyiv ceding the eastern Donbas region to Russia as part of a potential peace deal, Ukrainian President Volodymyr Zelenskyy said. (Pavlo Bahmut/Ukrinform/NurPhoto via Getty Images)
“The Middle East definitely has an impact on President Trump,” Zelenskyy said. “President Trump, unfortunately, in my opinion, still chooses a strategy of putting more pressure on the Ukrainian side.”
Talks between the United States, Russia and Ukraine have taken place in Abu Dhabi and Geneva in 2026, but key issues remain unresolved, including how Ukraine’s future security would be guaranteed and who would fund its long-term defense.
Zelenskyy warned that abandoning Donbas would hand Russia heavily fortified Ukrainian defensive lines, weakening Kyiv’s position and potentially enabling future aggression.
“I would very much like the American side to understand that the eastern part of our country is part of our security guarantees,” he said.
ZELENSKYY CLAIMS TRUMP SAID US WILL CONSIDER GIVING UKRAINE DECADES OF SECURITY GUARANTEES
Ukrainian President Volodymyr Zelenskyy warned that abandoning Donbas would hand Russia heavily fortified Ukrainian defensive lines. (Joe Raedle/Getty Images)
Russian President Vladimir Putin has long insisted that full control of Donbas is central to Moscow’s war aims. While Russian forces have made gains, analysts cited by Reuters say progress has been slow, and capturing the remaining territory could take significant time and manpower.
Zelenskyy also warned that Moscow is betting Washington will lose interest if negotiations stall.
“Russia is counting on the fact that the United States will not have the strength or patience to bring this to an end,” he said.
Despite tensions over negotiations, Zelenskyy thanked the Trump administration for continuing deliveries of Patriot missile defense systems, which Ukraine relies on to intercept Russian ballistic missiles.
“Deliveries to us were not stopped. I’m very grateful to President Trump, and to his team,” he said, while adding that supplies remain insufficient.
In parallel with the diplomatic push, Zelenskyy signaled a broader strategy to expand Ukraine’s role as a security provider, particularly in the Middle East, where countries are seeking solutions to large-scale drone and missile threats.
UKRAINE PEACE TALKS PRODUCTIVE AS EX-GOVERNMENT OFFICIAL SAYS COUNTRY RETHINKING ‘UNCOMPROMISING’ STANCE
A cemetery worker prepares a burial vault at military cemetery outside of the city of Dnipro, Ukraine, May 25, 2023. (Seth Herald/Anadolu Agency via Getty Images)
“The United States has reached out to us regarding their bases in Middle Eastern countries,” Zelenskyy wrote on X Thursday, adding that Saudi Arabia, Qatar, the United Arab Emirates, Bahrain, Jordan and Kuwait have also approached Ukraine.
He said Ukrainian teams are already on the ground sharing operational experience, particularly in countering mass drone attacks.
“No matter how many Patriots, THAADs, or other air defense systems are in the Middle East, that alone is not enough,” he wrote. “There are modern interceptors designed to counter heavy drone strikes.”
Zelenskyy also indicated Ukraine is exploring defense trade arrangements, offering to sell surplus systems and expertise while seeking access to air defense missiles it currently lacks.
“Funding is the scarcest resource today,” he wrote, noting Ukraine’s defense industry is operating at roughly half capacity and needs additional financing to scale drone production.
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Ukraine is exploring defense trade arrangements, the country’s president said. (Iryna Rybakova/Press Service of the 93rd Kholodnyi Yar Separate Mechanized Brigade of the Ukrainian Armed Forces/Reuters)
In separate posts tied to an address at a Joint Expeditionary Force summit, Zelenskyy emphasized that Ukraine’s battlefield experience could play a broader role in European and global security.
“We have this experience. … Let’s bring all of this together even more,” he wrote, calling for deeper cooperation with European partners and warning that the continent must build its own capacity to produce air defense systems rather than rely on external suppliers.
Reuters contributed to this story.
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